For 198 crores, IDFC First Bank will sell NSDL office space in Mumbai

 For 198 crores, IDFC First Bank will sell NSDL office space in Mumbai

On October 9, IDFC First Bank notified the stock markets that it had reached a deal with the National Securities Depository Limited (NSDL) to sell one of its Mumbai properties for a sum of 198 crore.

The Bandra-Kurla Complex (BKC) business district's Naman Chambers is home to the office space that will be offered to the securities depository. 

The decision is "part of concentration of bank's operations near its corporate headquarters at IDFC FIRST Bank Tower (The Square), C-61, G Block, BKC, Mumbai," the lender said in its regulatory statement.

The consideration for the aforementioned office space is worth 198 crore rupees, it was said.

According to IDFC First Bank, the occupancy of the office space will be transferred "as mutually agreed between both the parties" while the title and ownership of the office space would be transferred from the bank to NSDL.

Further clarification was provided by the bank, which said that NSDL "does not hold any shares in IDFC FIRST Bank" and that the selling agreement with the depository does not qualify as a related party transaction.

This news comes six days after rumors that IDFC First Bank intended to raise 3,000 crore via a qualified institutional placement (QIP) were published.

The private lender posted solid financial results for the three months ended in June 2023, with a 61 percent year-over-year increase in net profit to Rs. 765 crore. Net interest income for the bank increased 36% year over year to 3,745 crore.

As the Gross Non-Performing Assets (GNPA) decreased from 3.36 percent as of June 30, 2022 to 2.17 percent as of June 30, 2023, the asset quality also improved. 

On October 9, during the trading session, the share price of IDFC First Bank decreased by 1.48 percent from the previous day's closing to conclude at 90.04 a share.